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Chinese market offers one of the most lucrative investment avenues owing to the rapid economic progress that it made during the recent past. Etisalat- a UAE based telecom company is planning to make an entry into the Chinese market. Being one of the emerging firms in the world offering telecommunication services, the entry of Etisalat into the Chinese market will mark a new beginning in the history of the firm. However, Chinese market poses different types of risks and offer new and unique opportunities therefore it is necessary that Etisalat must do its homework and assess the situation with the help of different strategic frameworks and models in order to gain significant insight into the Chinese market.
Etisalat (firm) started its operations in 1976 and primarily served UAE market by providing telecommunication solutions. Over the period of time, however, it became one of the leading telecom services providers in the Middle East Region and expanded its operations in more than 18 countries of Asia, Africa as well as Middle Eastern countries. Serving a total customer base of 94 million, Etisalat is considered as the 13th largest mobile services provider in the world. Such high level of penetration into the market therefore indicates that the firm has the capability and will to expand into new markets to create further value for its shareholders. The majority shareholder is UAE government. (Huawei)
Started as a joint venture between the local partners from UAE and Britain’s International Aeradio Limited, Etisalat is now largely owned by the UAE government with 60% shareholding whereas remaining 40% is publically held. It is also because of this reason that Etisalat held the official patronage of being the only firm in UAE allowed to telecommunication services within the country and outside the country. The official support of the firm therefore further increased its
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